In his last speech to the United Malays National Organisation (UMNO) before handing over as party leader to his deputy, Najib Razak, Mr Abdullah lamented the decay that has set in after 50 years in power.

"We were intoxicated by our own achievements and we became complacent," he told delegates at its annual meeting. "We believed that we had become all-powerful. We have put our own positions within the party first."

Mr Abdullah said that elections a year ago, which handed the opposition control of a third of parliamentary seats in an unprecedented result that effectively ended his career, were a sign that "UMNO's glory has dimmed".

"Materialism has seeped into the party, making a number of party members greedy and avaricious," he said.

"The path that we choose will determine whether we continue to remain relevant or whether we are reduced to a forgotten footnote in the pages of history."

The 66-year-old drifted through a lacklustre term in power after taking over from veteran premier Mahathir Mohamad, who led Malaysia for more than two decades and publicly undermined his successor after the 2003 handover.

Mr Abdullah was punished at the ballot box for failing to implement reforms he had promised, including overhauling the police force and tackling corruption that is endemic in UMNO and Malaysian society.

However, he won some praise for giving more space to free expression after the repressive Mahathir years, and yesterday he warned the party not to resort to a hardline approach. "If we revert to the old path, I believe we are choosing the wrong path, one that will take us to regression and decay. It is a path that I fear will hasten our demise," he said.

Mr Najib has promised a radical overhaul of UMNO, but commentators say his political baggage — including low popularity ratings and unsubstantiated allegations of corruption and links to a sensational murder — will weaken his position.

Mr Najib has appealed to party members, who are voting this week to fill key posts, to install a strong new leadership team to help him bring about a turnaround.

There was an upset late on Wednesday when Mr Abdullah's son-in-law, Khairy Jamaluddin, 33, seized the position of chief of UMNO's youth wing.

Pundits had expected him to lose, saying he was seen as having too much influence over Mr Abdullah and partly to blame for the disastrous polls. His prospects were further damaged when he was rapped for buying votes. But he edged out other candidates, including Mr Mahathir's son, Mukhriz Mahathir. AFP